Commerce proposes ‘national security guardrails’ for CHIPS incentives

In a new regulatory proposal, the Commerce Department has outlined a series of “national security guardrails” around $39 billion in CHIPS and Science Act incentives for domestic production of semiconductors, designed to ensure the benefits do not flow to “malign actors.” “The proposed rule offers additional details on national security measures applicable to the CHIPS Incentives Program included in the CHIPS and Science Act, limiting recipients of funding from investing in the expansion of semiconductor manufacturing in foreign countries of...